USA TODAY US Edition

Losses are start­ing to add up for Jay Z’s Tidal

- Chris Wood­yard @ChrisWood­yard USA TO­DAY

Rap­per and pro­ducer Jay Z con­trols a busi­ness em­pire, but so far his suc­cess is not ex­tend­ing to Tidal, the mu­sic-stream­ing ser­vice he bought into last year.

Since Jay Z bought in with a group of in­vestors, losses are mount­ing. Aspiro, the Swedish­based hold­ing com­pany that con­trols Tidal, is burn­ing through cash amid in­tense com­pe­ti­tion in the genre, The Wall Street

Jour­nal re­ports. Aspiro had a loss of $28 mil­lion last year, al­most triple the loss recorded in 2014. Tidal has en­dured com­pe­ti­tion from a va­ri­ety of sources, from Spo­tify and Ap­ple to YouTube. For the mo­ment, Tidal is the dark spot among Jay Z’s many busi­nesses in the United States.

A Tidal spokesman had no com­ment.

Jay Z an­nounced in Fe­bru­ary 2015 his Carter En­ter­prises had bid $56 mil­lion for Aspiro. He cel­e­brated with a launch party in New York that was stocked with A-list celebri­ties, start­ing with wife Bey­once. At the time, Aspiro ap­peared to be on a roll, boast­ing it was avail­able in 31 coun­tries.

But Jay Z filed suit against Aspiro in March seek­ing what Swedish me­dia said was about $15 mil­lion. At the time, the is­sue was the num­ber of sub­scribers. “It be­came clear af­ter tak­ing con­trol of Tidal and con­duct­ing our own au­dit that the total num­ber of sub­scribers was ac­tu­ally well be­low the 540,000 re­ported to us by the pre­vi­ous own­ers.”

 ?? IN­VI­SION/AP ?? “We’re proud of our suc­cess,” Jay Z says.
IN­VI­SION/AP “We’re proud of our suc­cess,” Jay Z says.

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